UK CEOs raked in record salaries 2023, with nine firms offering their top brass more than £10 million ($12.75 million) each. The bosses of Britain’s biggest companies enjoyed record pay in 2023, with nine firms offering them packages of more than 10 million pounds ($12.75 million). The UK CEO pay package record rise was as per research on Monday, as British workers argue for higher wages.
The median pay for a FTSE-100 company CEO rose 2.2% to 4.19 million pounds last year, think tank the High Pay Centre said. It added, though that CEO’s earnings growth had slowed compared with the previous two years.
British workers wages
Median FTSE-100 CEO pay was 120 times that of the median full-time British worker, the research showed.
Train drivers and family doctors are among employees in Britain to take industrial action this year over pay or conditions.
“The increase in average CEO pay reflects a small number of companies making really large pay awards rather than big increases across the board,” said Luke Hildyard, director of the High Pay Centre.
Investors first
Hildyard added that Britain had “a business culture that puts the interests of investors before workers, customers, suppliers and other stakeholders”.
Executive compensation at Britain’s top companies has drawn shareholder anger in recent years, with most critical of the gap between average worker earnings and CEO pay.
But some UK fund managers are backing calls to give boards more flexibility on paying top talent, to staunch a brain drain to countries where pay is less of a hot topic.
CEO pay record rise
While some may argue that retaining top talent requires significant compensation, these eye-watering figures stand in stark contrast to the median full-time British worker’s salary, which is 120 times less. Notably, the rise in average CEO pay stems from substantial awards by a handful of firms rather than a widespread trend, highlighting a growing concentration of wealth at the top. High Pay Centre’s director critiques this as part of a broader business culture that prioritizes investors over other stakeholders, including workers and customers.
CEO salaries 2023
The highest-paid UK CEO British CEO was Pascal Soriot of drugmaker AstraZeneca, who earned 16.85 million pounds, as per High Pay Centre. Next was Erik Engstrom of information and analytics group RELX on 13.64 million pounds, the research showed, using company financial disclosures.
Increasing pay disparity in UK
The record-breaking CEO pay in the UK for 2023 highlights a significant issue of income disparity between top executives and average workers. With some CEOs earning over £10 million, the median pay for a FTSE-100 CEO reached £4.19 million, 120 times that of the median full-time British worker. This substantial gap underscores growing concerns about economic inequality and business practices prioritizing investors over other stakeholders.
As companies like AstraZeneca and RELX feature prominently with top earners, the debate over fair compensation and economic equity remains central. This situation could potentially fuel further industrial action and intensify discussions on how to balance executive pay with broader economic and social considerations.
